Question

A seller wants to net $100,000 after paying the broker 5% and paying off his loan balance of $200,000. He will also pay documentary stamps on the deed of $2100. What must the property sell for to cover all costs and net the seller his desired amount

Answer 1

Answer: $318,000

Step-by-step explanation:

The amount that the property must sell to cover all costs and net the seller his desired amount would be:

= ($100,000 + $200,000 + $2100) / (100% - 5%)

= $302,100 / 95%

= $302,100 / 0.95

= $318,000.